NEXT WEEK NIFTY PREDICTION & CHARTS 20 TO 24 AUG 18

WEEKLY RESISTANCE FOR NIFTY:11550,11625,11700

 PIVOT POINT: 11400

WEEKLY SUPPORT FOR NIFTY :  11400,11325,11275

WEEKLY CHART FOR NIFTY

DAILY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 11525,11550,11575

PIVOT POINT:11450

DAILY SUPPORT FOR NIFTY :  11425,11400,11375

Nifty closed the week on positive note gaining around 0.67%. As we have mentioned in our previous post that the index is trading at all time high so supports & resistance levels are shifting gradually higher day by day. Resistance for the index lies around 11525 to 11550 where target of triangle break out pattern lies. If the index manages to close above these levels then the index can move to the levels of 11575 to 11600. During the week the index manages to hit a high of 11507 and close the week around the levels of 11488.

LAST WEEK NIFTY 

Trading for the week kick-started with an upside gap as the set up on the domestic as well as global front was quite conducive for our markets. During the remaining part, index consolidated by maintaining its positive posture. In fact, there was one attempt made to clock fresh record highs at new milestone 11500; after that index came off, to conclude the week well above the 11450 mark. On Monday some geopolitical concerns on the global front spooked the traders’ fraternity and as a result, our markets opened with a decent downside gap to kickoff the trading for the week. This was followed by a gradual recovery throughout the first half to trim some early morning losses. However, a strong selling pressure at higher levels dragged the index lower to conclude around its lowest point of the day & closed at 11381. On Tuesday correction was followed by a gap up opening on Tuesday and then there was a sustained buying throughout the remaining part to reclaim the 11400 mark with an authority. The buying was seen across the board; but ‘Pharma’ and ‘IT’ stocks were the major charioteer along with the banking index.nifty future has closed Monday’s session at 11463. Wednesday market was closed due to national holiday of Independence Day. On Thursday index consolidated in a narrow range, which was clearly due to sheer index-balancing act within the heavyweight constituents. At the end, the Nifty managed to close with negligible loss tad below the 11400 mark. On week ended Friday bulls has shown strength & took nifty above 11500 mark & finally closed the week & positive note at 11487.

NIFTY: A STRONG SUPPORT WILL BE @ 10675; STRONG RESISTANCE LEVEL SEEN @10925

Support for the index lies in the zone of 11350 to 11300 from where the index broke out of earlier high. If the index manages to close below these levels then the index can drift to the levels of 11275 to 11250 from where the index broke out of double top and triangle pattern.

The index is trading at all time high so virtually no resistance exists. Resistance for the index lies around 11575 to 11625 where target of triangle break out pattern lies. If the index manages to close above these levels then the index can move to the levels of 11650 to 11700.

Broad range for the week is seen from 11350 on downside & 11600 on upside.

TECHNICALLY SPEAKING.

Generally, every rally has its own characteristics and we tend to see some different drivers. We still believe that further legs to this rally are likely to unfold as we move forward. Yes, after seeing a relentless move, we may see some profit taking in between; but eventually these pauses are likely to get bought into. For the forthcoming week, if Nifty stays below the key support zone of 11350 – 11300 then we may see this profit booking getting extended towards 11275 – 11250. But even if this happens, it would be a healthy sign with a broader view and hence, should be construed as a buying opportunity. On the upside, the immediate resistance remains at 11525 - 11555. It’s a matter of time; we will not be surprised to see this hurdle crossed to continue this northward journey. Last week, we saw extension of the ongoing rally almost towards 11500 mark; but traders preferred booking profits on Friday to conclude the week near to  11500 mark. Meanwhile, good amount of longs were formed in Nifty futures. Despite some profit booking on Friday, we hardly saw any massive unwinding by put writers. At present, 11350-11400 is a strong base for Nifty; whereas, 11525-11550 is an important hurdle. Considering the above data points, we don’t see major correction from current levels, traders with longs are advised to hold on their positions and any dips in the upcoming week shall be an opportunity to add fresh longs. For the forthcoming week, first half would be quite crucial and hence, one should keep a close eye on how markets behave around its key levels.